When it comes to domestic leasehold premises in Felling and Pelaw, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Leasehold owners in Felling and Pelaw with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has below 80 years left, under the current statute the freeholder can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Felling and Pelaw,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Felling and Pelaw valuers.
Archie was the the leasehold owner of a 2 bedroom apartment in Felling and Pelaw on the market with a lease of a few days over fifty eight years remaining. Archie informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Archie to exercise his statutory right. Archie obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2009 we were contacted by Mr and Mrs. J Mitchell who, having purchased a garden apartment in Felling and Pelaw in February 2000. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparable premises in Felling and Pelaw with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease finished in 2092. Taking into account 67 years left we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus fees.
Last Spring we were called by Mr and Mrs. K Bell , who completed a one bedroom flat in Felling and Pelaw in July 2011. The question was if we could approximate the price could be to extend the lease by 90 years. Identical residencies in Felling and Pelaw with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £60 collected annually. The lease elapsed in 2081. Having 56 years remaining we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of costs.